Question
Tobins Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for November: Units 12
Tobins Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for November:
Units | ||||
12" Pizza | 16" Pizza | |||
Budgeted production volume | 57,000 | 37,000 |
There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows:
12" Pizza | 16" Pizza | ||||
Direct materials: | |||||
Dough | 0.55 | lb. per unit | 0.80 | lbs. per unit | |
Tomato | 0.25 | 0.40 | |||
Cheese | 0.70 | 1.20 |
In addition, Tobins has determined the following information about each material:
Dough | Tomato | Cheese | ||||
Estimated inventory, November 1 | 2,200 | lbs. | 1,200 | lbs. | 2,700 | lbs. |
Desired inventory, November 30 | 1,800 | lbs. | 1,500 | lbs. | 2,600 | lbs. |
Price per pound | $0.60 | $0.70 | $0.95 |
Prepare November's direct materials purchases budget for Tobins Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round your final answers to the nearest dollar.
Tobins Frozen Pizza Inc. | ||||||||
Direct Materials Purchases Budget | ||||||||
For the Month Ending November 30 | ||||||||
Dough | Tomato | Cheese | Total | |||||
Units required for production: | ||||||||
12" pizza | ||||||||
16" pizza | ||||||||
Total units available | ||||||||
Total units to be purchased | ||||||||
Unit price | x | $ | x | $ | x | $ | ||
Total direct materials to be purchased | $ | $ | $ | $ |
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